eToro, the Israel-based trading and investment platform, just weeks after launching its services in the United States, announced that it will purchase the smart contracts provider, Firmo for an undisclosed price.
Through this purchase, eToro hops to grow the tokenized financial assets on its own platform. In particular, eToro was most interested in the technical abilities of Firmo’s team on research and development, according to press.
The acquisition is another strategic step taken by eToro. In early March, 2018, the company launched a part of its service on the US market (a crypto-only one).
Firmo is a Copenhagen-based smart contract provider, whose platform essentially enables exchanges to fulfill financial contracts across a variety of different assets, such as several types of blockchain and even cryptocurrency derivatives.
According to TechCrunch, Firmo has had only one investment, which came from Copenhagen Fintech Lab accelerator.
The acquisition is also very in line with Firmo’s strategic growth plan. Just as eToro, Firmo is also an educational and social network platform that hopes to bring transparency to financial markets. Firmo offers a language called FirmoLang. Interestingly enough, the programming language runs on a separate, sidechain. By using the language, exchanges ca actually create financial instruments with tokens. The advantage for the user is that these tokens can be used on any type of blockchain, not just one particular.